ECB President LAGARDE said the ECB was surprised that inf came in below expectations.

The EIA's Short-Term Energy Outlook forecasts U.S. electricity sales of 4.135 trillion kWh in 2026 and 4.211 trillion kWh in 2027, both record highs. The agency cites data-center construction and stronger commercial and industrial manufacturing activity as the main demand drivers; despite Texas suspending new data‑center grid interconnections, the EIA expects the U.S. Southwest/Midcontinent region to contribute the largest share of sales growth.

Royal London Asset Management analyst Wolfgang Baur said ahead of Thursday's ECB meeting markets largely expect a 25bp hike after June's first move, and the key question is whether that marks the end of a short-lived pre-emptive tightening or the start of a longer hiking cycle. Market clues will come from whether Lagarde stresses energy-driven headline inflation or recent weakness in core and services inflation. Rising long-term government bond yields have already tightened financial conditions and are carrying much of the ECB's work. Baur said he finds it hard to justify a longer, more aggressive hiking cycle unless inflationary pressures broaden materially.